A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you' a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 5%, what is her promise worth today? The present value of the aunt's promise is $ (Round to the nearest cent.)

A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you' a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 5%, what is her promise worth today? The present value of the aunt's promise is $ (Round to the nearest cent.)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

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